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Ralph Lauren’s China Surge Could Unlock A Bigger Global Luxury Growth Story!

Ralph Lauren Corporation reported its fiscal year 2026 results with revenue surpassing $8 billion for the first time, driven by growth across retail and wholesale channels globally. The company’s strategic Next Great Chapter: Drive plan, now in its first year, delivered both top-line and bottom-line results ahead of expectations. Revenue increased 12% in the fourth quarter on a constant currency basis, led by a 28% increase in Asia, 8% growth in North America, and 6% growth in Europe. Direct-to-consumer (DTC) channels, particularly digital commerce and Ralph Lauren-owned stores, demonstrated considerable strength, with global retail comps rising high teens and 1.4 million new customers added in the quarter. Gross margin expanded 40 basis points to 69%, exceeding outlooks despite tariff headwinds and higher labor and material costs, supported by higher average unit retail (AUR) growth of 16%, improved full-price selling, and favorable product and geographic mix.